After nearly three months, retailers can start dusting their shopfronts and removing stock from storage as Auckland moves to Level 3.2 just in time for the busiest shopping period of the year
International freight troubles, Auckland's lockdown and booming demand for online shopping have made for some of the busiest months for storage businesses.
Storage facility Smartbox, which typically helps Aucklanders use its 3000 square metre warehouse while moving houses, has been busier with homeware and clothing shops hiring storage space.
Its director Jonelle Philipps says due to global supply chain issues, retailers have also been stocking up in preparation for Christmas.
“It’s taking longer for stock to arrive in the country from overseas so instead of ordering several pallets retailers re ordering a 20 foot container or two 20 foot containers,” Philipps says.
“We’ve got large homeware companies and quite a lot of clothing brands. There’s also smaller e-commerce sellers who have set up a business during lockdown for whom we pack and send out.”
She says while retailers will be looking to move storage to their bricks and mortar shop fronts, many will likely continue fulfilling online orders from Smartbox’s warehouse.
"Lockdowns have certainly brought online shopping platforms forward a lot sooner for many businesses."
Retail NZ chief executive Greg Harford says the strong demand for online shopping has put pressure on couriers and backed up local supply chains.
He says retailers will be looking forward to easing that pressure, reducing the delays and selling directly to customers from stores.
“Online shopping happening at the moment has really snailed up courier networks. There are quite large volumes of product going through the courier network,” Harford says.
“Hopefully stores will be well stocked on Wednesday when they open. But really, it is quite a process for businesses to open up. They have to review processes, make sure they've got all the systems they need in place to keep everyone safe and undertake a store by store assessment of the layout.”
A spokeswoman for NZ Post says it's too early to know what the impact of Auckland’s move to Level 3.2 will mean for the courier network.
"There's a whole lot of things that we like to do as part of the shopping experience and the fact that hospitality is still going to be closed will dampen some of that." – Greg Harford, Retail NZ
But international freight problems will likely mean that customers will find slightly smaller offerings in the market this year, Harford says.
“It’s harder for retailers to deliver deals in the same way they might have done previously.”
Retail not the same without hospitality
And while Aucklanders will be able to visit their favourite shops, they won’t be able to dine or watch movies in Level 3.2.
Harford says shopping is typically a social experience and hospitality is a big part of that.
“When we go to the shops, we have a meal, we have a coffee, we might go for a massage or something. There's a whole lot of things that we like to do as part of the shopping experience and the fact that hospitality is still going to be closed will dampen some of that.
“It's not going to be business as usual,” he says.
Restaurant Association chief executive Marisa Bidois says it is yet to hear a response from the Government on its request for outdoor dining at Level 3.2.
“The short-term nature of the current planning provides no certainty around when our businesses can plan to reopen so we would now like to see a specific date given for reopening.”
